Husky Injection Molding Systems sold in $3.9bn PE exit

February 2018 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

February 2018 Issue

The world’s largest brand name supplier of injection moulding equipment and services to the plastics industry – Husky IMS International Ltd – is to be acquired by Platinum Equity in a deal valued at $3.9bn.

The definitive agreement will see Platinum Equity purchase Ontario-based Husky from private equity firm Berkshire Partners LLC and OMERS Private Equity Inc., the private equity arm of OMERS and the defined benefit pension plan for Ontario’s municipal employees. Husky has been owned by Berkshire Partners and OMERS since June 2011.

“In Platinum, Husky has found a partner that brings a wealth of experience, a highly capable team and a shared enthusiasm for building great companies,” said John Galt, president and chief executive of Husky. “I am confident that by working together we will find new and exciting ways to serve our customers.”

A leading industrial technology provider to the plastics processing community with an unprecedented level of innovation effectiveness, Husky works with its investors to successfully advance state-of-the-art manufacturing equipment, which it delivers to its wide range of customers in various end-markets across the globe.

Demand for Husky’s products and services is primarily driven by growth in the beverage packaging segment, as well as in plastics consumables. Husky is a global enterprise with approximately 75 percent of its sales generated outside North America. In addition to complete injection moulding solutions, Husky also provides aftermarket services and parts to a large and growing installed base of systems globally.

Following completion of the deal, Mr Galt will stay on to run the business as chief executive. He and other members of Husky’s management team will remain significant investors in the business through continued equity ownership.

“Husky is an extraordinary company with a well-deserved reputation for developing the industry’s most innovative technology,” said Louis Samson, the Platinum Equity partner who led the transaction. “John Galt and his team have built one of Canada’s most successful enterprises and a truly world class industrial company. We are excited to partner with such an exceptional leadership team and we aim to help them continue raising the bar.”

Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with $13bn of assets under management and a portfolio of more than 30 operating companies that serve customers around the world. The firm specialises in mergers, acquisitions and operations – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 22 years Platinum Equity has completed more than 200 acquisitions.

“This transaction is another marquee investment that demonstrates how Platinum’s differentiated approach continues to scale,” said Platinum Equity chief executive Tom Gores. “We have the capacity and the resources necessary to handle transactions of any size and complexity anywhere in the world.”

Acting as financial advisers to Husky are Baird, Goldman Sachs and CIBC Capital Markets, while Weil, Gotshal & Manges and Torys are legal counsel. For Platinum Equity, financing will be led by Bank of America Merrill Lynch and Deutsche Bank. Latham & Watkins, Stikeman Elliott and Baker McKenzie are acting as legal counsel.

The transaction is expected to close during the second quarter of 2018 subject to regulatory approval.

Mike Ascione, a managing director at Berkshire Partners, concluded: “We are fortunate to have partnered with the outstanding management team at Husky. The company is well-positioned for continued growth and success, and we are thankful for the opportunity to have worked with them and the team at OMERS.”